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Ernesto Talvi is a non-resident senior fellow in the Global Economy and Development program at the Brookings Institution and Director of the Brookings Global-CERES Economic and Social Policy in the Latin America Initiative.

Ernesto Talvi explains the "political cycles" in Latin America, which "are highly synchronized, and tend to reflect economic booms and busts" of the region, that relies on export of commodities to generate revenues. More than two decades after the Cold War, during which the US backed anti-communist junta regimes and pushed free-market policies in Latin America, conservative governments disappeared from the region towards the start of the millennium. In the 2000s there was a leftward shift, but the "red tide" seemed to be receding, ushering in right or right-wing politicians in Argentina and Venezuela in 2015. In Brazil, former president Dilma Rousseff of the Workers' Party was removed from office two months ago in an impeachment vote.
The rightward shfit tends to honour the Washington Consensus - "fiscal discipline, price stability, trade and financial liberalization, privatization, and deregulation." What differs Latin America's right wing today from its peers in Cold War era is that conservative candidates move to centre right, promising greater social spending and wealth redistribution, because inequality is such an entrenched issue. But many of the region's leftists - hardly a monolithic bloc - have co-opted some of those issues as they have become more moderate. Apart from an agenda like trade protectionism and relations with the US, they are keen on securing macroeconomic stabilisation and emulate the rightists.
When financial scandals and rampant corruption set in, and when politicians unable to unite or convince a majority in their countries that they could resolve the crises, people look for a political alternative, allowing the return of the opposition. What is worth learning is that, "Latin America’s 40-year history of political swings between center-right and center-left governments is evolutionary: each new stage builds upon the previous one. Much like creative destruction, evolution preserves what works, discards what does not, and sometimes adds new, disruptive features."
The author believes the current "new crop of mostly center-right, mainstream Latin American governments" will "most likely.... continue the evolutionary process, by preserving some of the basic Washington Consensus tenets, while pursuing new redistribution policies when feasible." It is important for leaders to focus on a sustainable economy and avoid profligacy of resources, as they "will be scarce" one day. The author speaks of a new model of macroeconomic management - "intelligent austerity." This involves leaders to "redesign social-spending programs and infrastructure projects to maximize efficiency and get more bang for their buck." Indeed, if "Latin American governments implement it successfully, they truly will /not only/ deserve to claim credit for the economic gains that result," they will also set an example for the international community.﻿